The Orange View (on hiatus) Because Apple is great but it isn't perfect


Paypal wants to get in on subscription food fight

After Apple announced its 30% take (plus assorted other restrictions) for digital subscriptions on iOS and Google offered a 10% plan, eBay's PayPal wants to get in on some of that action with a 5% offer. Noting Apple's March 2 expected iPad 2 announcement, PayPal exec Sam Shrauger took the opportunity to put in a plug for his horse in the subscription payment race.

The message is pretty clear from the publisher community, paying 30 percent in fees isn’t a sustainable business model. We believe that  a publishers’ payment model should be determined by them not the platform provider, and it should let them test multiple payment models, over multiple payment platforms until it’s clear what consumers want.

As we watch the debate continue, our message remains the same, one device or operating system will not win out. Ultimately the consumer is going to choose. History has shown time and again that the open web, where consumers can pay for content they want, in the way they want, across multiple devices, will win out over the walled garden that Apple offers for digital content providers.

-PayPal blog, Feb. 23, 2011

Posted by Aaron Pressman

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